How to calculate finished goods inventory ending?
Understand the Problem
The question is asking how to calculate the ending balance of finished goods inventory, which typically involves considering beginning inventory, production during the period, and sales of finished goods. The approach will include using the formula: Ending Finished Goods Inventory = Beginning Inventory + Production - Sales.
Answer
Ending Finished Goods Inventory = Beginning Finished Goods Inventory + COGM - COGS
The ending finished goods inventory is calculated using the formula: Ending Finished Goods Inventory = Beginning Finished Goods Inventory + COGM - COGS.
Answer for screen readers
The ending finished goods inventory is calculated using the formula: Ending Finished Goods Inventory = Beginning Finished Goods Inventory + COGM - COGS.
More Information
This formula helps businesses track the value of their finished goods and manage inventory effectively.
Tips
Ensure you have accurate beginning inventory numbers and precise calculations for COGM and COGS to avoid errors.
Sources
- Finished Goods Inventory Accounting - QuickBooks - quickbooks.intuit.com
- Finished Goods Inventory: Formula, Calculation & Turnover - BlueCart - bluecart.com
- Finished Goods Inventory Explained - NetSuite - netsuite.com
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